Here are the six additional measures announced by the RBI governor...

1. Securitisation of Stressed Assets Framework
A prudentially structured securitisation transaction can be an enabler for the resolution of stressed assets as it is expected to improve risk distribution and provide an exit route from such exposures for lenders. With this objective, RBI released a discussion paper on securitisation of stressed assets framework in January 2023 to seek comments from market participants on various aspects of the framework. After factoring in the suggestions received from the stakeholders on the discussion paper, the draft framework for securitisation of stressed assets is being issued for public comments. The framework intends to enable the securitisation of stressed assets through a market-based mechanism, in addition to the existing asset reconstruction company (ARC) route under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.

2. Framework on Co-lending Arrangements (CLA)
The extant guidelines on co-lending are applicable only to arrangements between banks and non-banking finance companies (NBFCs) for priority sector loans. In light of the evolution of such lending practices and the potential of such lending arrangements in catering to the credit needs of a wider segment in a sustainable manner, it has been decided to expand the scope for co-lending and issue a generic regulatory framework for all forms of co-lending arrangements among regulated entities (REs). The draft guidelines are being issued for public comment.

3. Review of Guidelines for Lending against Gold Jewellery
Loans against the collateral of gold jewellery and ornaments are extended by REs for both consumption and income-generation purposes. Prudential and conduct-related regulations for such loans have been issued from time to time and they vary for different categories of REs. With a view to harmonising such regulations across REs while keeping in view their risk-taking capabilities and also to address a few concerns that have been observed, it has been decided to issue comprehensive regulations on prudential norms and conduct related aspects, for such loans. The draft guidelines in this regard are being issued for public comment.

4. Review of Non-fund-Based Facilities
Non-fund-based (NFB) facilities like guarantees, letters of credit and co-acceptances play a significant role in facilitating effective credit intermediation, besides enabling seamless business transactions, including trade transactions. It has now been decided to harmonise and consolidate guidelines covering these facilities across all REs. The revised guidelines include a review of instructions on the issuance of partial credit enhancement by REs, with a view to, inter alia, broadening funding sources for infrastructure financing. Draft guidelines in this regard are being issued for public comment.

5. Enhancing Transaction Limits in UPI
At present, the transaction amount for UPI, covering both person-to-person (P2P) and person-to-merchant payments (P2M), is capped at Rs1 lakh except for specific use cases of P2M payments which have higher limits, some at Rs2 lakh and others at Rs5 lakh.

To enable the ecosystem to respond efficiently to new use cases, it is proposed that the National Payments Corporation of India (NPCI), in consultation with banks and other stakeholders of the Unified Payment Interface (UPI) ecosystem, may announce and revise such limits based on evolving user needs. Appropriate safeguards will be put in place to mitigate risks associated with higher limits. Banks shall continue to have the discretion to decide their own internal limits within the limits announced by NPCI.

P2P transactions on UPI will continue to be capped at Rs1 lakh. NPCI will be advised accordingly.

6. 'On Tap' Application Facility under Theme-neutral Regulatory Sandbox
RBI has been operating the regulatory sandbox (RS) framework since 2019, and four specific thematic cohorts have been announced and completed till date. An 'on tap' application facility for themes of closed cohorts was announced in October 2021. A fifth 'theme neutral' cohort with a specified time window for receiving applications was also announced in October 2023, which will close in May 2025. Under this cohort, any innovative product or solution within the regulatory ambit of RBI could be tested if found eligible. Based on the experience gained and feedback received from stakeholders, it is now proposed to make the Regulatory Sandbox 'Theme Neutral' and 'On Tap'.

This initiative is expected to foster continuous innovation and keep pace with the rapidly evolving fintech and regulatory landscape. Additional details in this regard will be communicated separately.